Mark Zuckerberg could see $24 billion wiped off his personal fortune after shares of parent company Facebook plummeted on Wednesday.
Shares on Meta – formerly Facebook – fell more than 20% in after-hours trading following lame Q4 earnings results.
If that move holds when markets open today, it will burn a $24 billion loss in founder Zuckerberg, 37, in his pocket.
That would make him a net worth of about $97 billion, down from $120.6 billion as of Wednesday’s close, according to the Bloomberg Billionaires Index.
The move will push Meta’s chief executive off the top ten list for the first time in nearly seven years.
He is currently in 5th place behind the likes of Amazon founder Jeff Bezos, Tesla boss Elon Musk and Microsoft’s Bill Gates.
Zuckerberg holds about 17% of the total outstanding shares of Meta, the company he founded in 2004 from his Harvard University dorm room.
The California tech giant on Wednesday delivered a dismal mix of sharper-than-expected profits, falling user numbers and threats to its ad business that sent shares into disarray. about 22% drop in after-hours trading.
Slippery Zuck blamed the meteoric rise of rival service TikTok on Facebook’s apparent stagnation.
“People have a lot of choices about how they want to spend their time, and apps like TikTok are growing really fast,” Zuckerberg said during an earnings call yesterday, according to the company. Washington Post.
Boiling markets have punished the darlings of the pandemic era, including Netflix, for disappointing results.
Meta learned about it after quarterly profits of $10.3 billion and daily user growth fell short of expectations.
However, the signature Facebook platform also reported a loss of about one million daily users globally in the last two quarters of 2021.
That’s a small number on an app with nearly two billion daily users, but it’s a worrisome sign of stagnation.
CFO Dave Weiner told analysts that user growth hit by “headwinds” including disproportionate growth in Asia-Pacific during the pandemic has slowed and the rise in mobile data prices in India.
In addition to these factors, we believe competing offerings are negatively impacting growth, especially for younger audiences, added Weiner.
The company’s executives have repeatedly mentioned competition from TikTok but also from other networks, while they face numerous investigations and complaints about abuses of dominance.
Analysts expect 1.95 billion daily active users on Facebook, but Meta reports 1.93 billion – a key indicator of a company’s growth trajectory driven by people choosing the same with its foundation.
Financially, Meta hit $33.67 billion in revenue, in line with its forecast, but it made $10.3 billion in net profit in the fourth quarter, 8% less than last year.
To account for the disappointing performance, Meta noted the competitive and supply chain difficulties suffered by its customers and advertisers.
Meta’s share price fell about 22% to around $250 by 00:10 GMT in after-hours trading.
At the same time, the company said that rules Apple imposed last year on ad targeting had a negative impact on its financial results in the fourth quarter.
In an update to iOS, its mobile operating system, Apple required app publishers to get permission before collecting data, unfortunately companies like Meta rely on that information to target advertisement.
“Meta may just generate single-digit revenue growth. And that’s before any other legal and regulatory actions and developments,” said Third Bridge analyst Scott Kessler.
“It seems a lot of people are re-evaluating in real time,” he added.
As of December 31, 2021, 2.8 billion people are using one of the four platforms and its messaging services at least once per day and 3.6 billion at least once a month.
These are the first results released since the company changed its name in late October, both a turning point towards its super-contrary vision and turning its back on its scandalous social media empire. .
The Silicon Valley giant’s whistleblower crisis last year highlighted allegations that executives prioritized growth over keeping their billions of users safe.
Aggregated news reports based on internal documents leaked by former employee Frances Haugen have revived long-deadlocked regulatory efforts, but US lawmakers have made little progress since from that.
An activist group calling itself the Facebook Oversight Board actually captured the results to warn of what might happen next.
“Facebook appears to be feeling the impact of ad revenue from Apple’s new privacy-first approach,” the group said in a statement.
“This will certainly make them more desperate to increase ad revenue by any means necessary,” it added.
Meta is betting heavily on the belief that the metaverse is the next big evolutionary step in how humans live with the Internet.
In this sci-fi evocative future, the public will use augmented reality glasses and virtual reality headsets to find their way around, work, or play.
But building it meant investing tens of billions of dollars in the Facebook subsidiary Reality Labs, which didn’t pay off for a long time.
“There is a lot of uncertainty about Meta’s investments in the metaverse and whether they will have a positive impact on the company’s bottom line,” said analyst Debra Aho Williamson.
In other news, a four-ton block of a SpaceX rocket is on a collision course with the Moon, according to online space junk trackers.
Boeing has sink 450 million dollars became a flying taxi startup that hopes to attract passengers across cities by the end of the decade.
Personalized smart guncan only be activated by verified users, may eventually be made available to US consumers this year.
And, scientists are embarking on a mission to unravel the mystery behind dozens of creepy baby mummy was buried in an underground tomb in Sicily.
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https://www.thesun.ie/tech/8308456/mark-zuckerberg-24-billion-poorer-facebook-nosedive/ Mark Zuckerberg could be $24 billion POOR when he wakes up from ‘Facebook is down’